Forex Articles - Forex Investment and Forex Trading

Investors who want to make their first Forex investment must decide if they want to manage their investment by themselves (if they have the needed skills and experience) or if they want to trust an investment company or bank that specializes in managing Forex investments with their capital. To choose what the best option for you is or which broker or investment company to use, you can do a quick and easy search online to get some useful information.

If you want to trade your money by yourself then you should know that almost every broker offers analyzing tools, charts, news and other helpful services to provide their clients with complete information and help them make smart decisions. If you want to become a long-term successful Forex trader however, this isn't enough.

When conducting your online research, you must make sure that every company or broker you choose to manage your investment has the needed experience, skills, and stability to manage your investment well. Another aspect that you should pay attention to is what commissions, spreads and fees they charge on your deals and investments. Many of the brokers in Forex trading do not take commissions and their profits come only from the difference between bid and ask prices and sometimes from the swaps. You can also meet brokers that are aiming for high profits, which of course come out of your pocket.

Depending on the Forex investment itself, some investment managing companies charge different types of fees and commissions. Many companies' commission is a fixed percent of the returns for a certain period – for example 15% of the achieved returns for every 3 months. Other companies have a shares system and sell their investments by the form of shares with fixed prices. Depending on the results they have, the price of the shares rises or falls. In these cases, the company managing the investments profits from the difference in the bid and ask prices of the shares. This difference is usually 2-5% of the share prices. If the bid and ask prices of an investment fund are $40 and $42 USD then the company’s profits come from this $2 USD difference which is a 5% commission.

The management commissions of some companies’ investment products are hidden and can’t be seen directly by the client but are visible only in the company reports. When the investor has made their investment, they will receive returns without being charged any fees or commissions. In this case, the managing company charges fees monthly or yearly in case it has reached positive income. This is the most convenient method for the investors because in times where there are no returns or losses, he is not charged any fees and doesn’t pay any cost for the investment they made.

The fees and commissions are very important because some companies use mechanisms that lower the end return for the investors by increasing the fees and the commissions of the company. Whether you decide to trade by yourself or trust an investment company with your investment depends on your personal choice, skills and experience. But it is very important to make sure that you are always working with professionals, are not paying unnecessary fees and commissions, and are letting your capital work for you.

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